The Federal Board of Revenue (FBR) has directed to expedite the registration of low-risk applicants for sales tax and complete it within a stipulated time frame.
In this regard, the Revenue Division of the FBR, Inland Revenue, has officially issued Sales Tax General Order No. 20 of 2026.
It states that sales tax registration applications will be processed on a risk basis, while applications falling under the low-risk category under computerized risk parameters will be processed on priority and within a stipulated time frame, in which all the required information and documents are complete.
The concerned Local Registration Office will process them without unnecessary delay and, as far as possible, grant registration within three working days.
According to the FBR, additional documents or information will be sought from a low-risk applicant only if it is specifically required under the Sales Tax Act, 1990, as prescribed in the Sales Tax Rules, 2006.
It is necessary to verify the information provided by the applicant or if a specific risk has been identified in the computerized risk management system. The FBR has directed that while sending the application requiring further examination to the concerned officer, the specific reasons for it should be recorded electronically and the application should not be kept pending without reason.
If the application is incomplete or any required document or information is missing, incorrect or insufficient, the applicant will be informed through the computerized system within seven days of submission of the application.
The notification will clearly state the document or information required, the deficiency or discrepancy found, the method for its removal and the time given for compliance. The general order has clarified that no general or vague objection will be raised and each objection should be specific, relevant and traceable to the relevant legal or regulatory requirement.
Once the applicant has provided the required documents or information, once the application is complete, he/she will not be forced to start the registration process again but the application will be processed immediately.
To facilitate the registration of genuine manufacturing establishments, the FBR has also directed the sectoral associations representing manufacturers of various sectors, which fall under the purview of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), to provide pre-registration certification regarding the details and existence of their member applicants.
The sectoral association will be able to verify to the extent of its available records that the applicant is engaged in or intends to be engaged in the relevant manufacturing activity.
The place of business or factory indicated by the applicant is identifiable, where applicable the applicant is a member of the association, the proposed manufacturing activity is consistent with the relevant sector and the details provided by the applicant to the association have been verified with the available records.
According to the FBR, the certificate issued by the sectoral association shall be provided electronically by the applicant or the concerned association along with other documents to the concerned Local Registration Office.
This certificate shall be considered as a pre-registration verification aid for convenience and shall not replace any statutory requirement prescribed under the Sales Tax Act, 1990 or the Sales Tax Rules, 2006. The certificate shall also not provide any exemption, discount or legal exemption to the applicant.
The concerned association shall be liable in case of any incorrect information being revealed during physical verification. As per the general order, the concerned Local Registration Office shall conduct pre-physical verification within three working days in the case of manufacturer under rule 5(5) of the Sales Tax Rules, 2006.
The result of the verification will be recorded electronically and the application will be processed without undue delay. The FBR has clarified that the sales tax registration process will continue on a risk basis and high risk or suspicious applications may be subjected to additional verification, pre-verification, post-verification or other verification measures as per the law.
The low risk rating will not prevent the FBR from re-verifying based on information that comes to light later, especially if there is any indication of risk, non-existence, misrepresentation, forged documents or any other irregularity.
The FBR has directed all Chief Commissioners Inland Revenue and Commissioners Inland Revenue to ensure strict implementation of the General Order.